A well established and successful precision engineering company sought to finance a used machine tool which it was purchasing via an auction for £40K. Despite having significant funding facilities with its clearing bank, the company did not want to tie up working capital with a cash purchase. It could not secure asset finance through the bank or other traditional sources due to the age of the equipment and the fact that it was being purchased via an auction. The customer was left considering paying for the machine out of cash flow in order to meet the terms of sale set by the auctioneer and to avoid additional fees.
PAF approached one of their panel funders who were experienced in both machine tools and funding assets purchased from non-dealer facilities. Credit approval was secured for a hire purchase facility to cover the entire cost of the purchase, including the buyers premium with a 10% deposit over a 36-month term. The documents were raised within 24 hours. PAF arranged for the lender make contact with the auctioneer, organised for the asset to be inspected and the necessary amendments to the invoice to be made, allowing the lender to settle the balance in full.
The speed of providing the funding, small deposit and communication from PAF and the lender allowed the customer to secure the machine and complete the purchase with a minimum interruption to their cash flow and avoided further fees payable to the auctioneer.